Types of Business Organisation
The Client Brief
AO2: Application to a Real Business Context
Meet Bob & His Burger Baron
A Journey Through Business Structures
Bob starts selling burgers from a van outside the local factory. He invests his savings of $10,000. Business Structure: Sole Trader.
"I keep all the profits, but if this fails, I could lose my house..."
Bob partners with his brother Dave to open a restaurant. They each invest $25,000. Business Structure: Partnership.
"We share the work and profits 50/50, but we both risk our personal assets..."
Success! They incorporate as Burger Baron Ltd to protect their homes and attract investors. Business Structure: Private Limited Company (LTD).
"Now our personal assets are safe. But there's more paperwork..."
Burger Baron Ltd sells franchises to entrepreneurs worldwide. Alice pays $50,000 to open a Burger Baron in Cairo. Business Structure: Franchise.
"Alice runs her own business, but pays us royalties and follows our brand rules..."
Understand WHY Bob changed business structures at each stage. What were the risks and benefits of each decision? This is AO3 Analysis and AO4 Evaluation.
🎓 Lesson Complete!
You've mastered Topic 1.4: Types of Business Organisation through Bob's Burger Baron journey.
Key Takeaway: The business structure you choose depends on your size, risk tolerance, and expansion goals. Each structure has trade-offs between control, liability, and complexity.
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